Page 176 - 2017 White Paper
P. 176
7 White Paper on the Business Environment in China

Ongoing Attempts to Close the Income Mr. Gao, “not only help[s] to accelerate the strategic
Gap Between Urban and Rural Workers restructuring of agricultural and rural areas and promote
employment of farmers and increase of their income
The first official announcement of 2010, the opinion as well as development of modern agriculture and a
titled “CPC Central Committee and State Council on the new countryside, but also play[s] important roles in
increasing intensity of urban and rural development”, strengthening the interaction between urban and rural
placed emphasis on the reform and modernization of the areas… [and coordinates the] development of rural and
rural economy — a large part of which is unsurprisingly urban areas” (Liang 2010).
constituted by the agricultural sector.
For all these efforts, however, significant gains appear
According to Xinhua, the document states that in elusive. Su Hainan of the China Association for Labour
addition to attempting to stimulate consumption in Studies (a government think-tank) notes that urban
rural areas, the government will also “continue boosting incomes remain three-to-four times higher than rural
financial input into the agriculture and rural areas”, incomes (China Daily 2011).
an increase in financial input to be manifested in the
following ways: According to the Ministry of Agriculture, “in 2013 per
capita net income of rural residents reached 8896 yuan.
[Budget expenditure] should first support Among the four elements in rural residents’ income, the
development of the agriculture and rural area, fastest growing one is property income, with an increase
and fixed-asset investment first be channeled into of 17.7 % over the previous year, followed by wage income,
agricultural-related infrastructure and projects in an increase of 16.8%, while transfer income increased by
relation to rural livelihood. 14.2%, and family-run income, 7.4%. The total number of
China’s migrant workers in 2013 was 26,894 million with
More subsidies should be channeled to increase the an increase of 633 million compared with that of last year,
output of grain, potato, highland barley and peanut, increased by 2.4 percent, among which local migrant
as well as the purchase of agricultural machinery, it workers were 10,284 million, increased by 3.6 percent.
said. The average income of migrant workers was 2609 yuan
per month, with an increase of 13.9% over the previous
The government would implement more policies year” (Ministry of Agriculture of the People’s Republic of
for purchasing and stockpiling major agricultural China 2014).
products, including corn, soybean and oilseeds, to
stabilize prices of major farm produce. At the same time, the government is inching towards
increased assistance for the welfare of rural families.
More efforts will be made to strengthen financial On September 11, 2013, the National Family Planning
services including micro-credit loans and insurance Council released an announcement on the work of New
service in rural areas, according to the document Rural Cooperative Medical System, which stated that
(Xinhua 2010). “from 2013, the new rural cooperative medical system
subsidy from financial department at all levels should
The policy release reportedly also proposes increased be increased from 240 yuan per person per year to 280
focus on addressing issues arising from a“new generation yuan per person per year, and the reimbursement rate
of migrant workers” (those born in the 1980s and 1990s) for hospitalization expenses covered by related policies
and methods by which to stimulate the construction or should be increased to about 75%. In 2013, the new rural
refurbishment of rural residential properties (Xinhua cooperative medical system was not confined to the local
2010). region and the reimbursement can be made in different
provinces. Nine provinces and municipalities, including
Later in 2010, a Vice Minister of Agriculture noted that Beijing, Inner Mongolia, Jilin and Jiangsu were the first
development of rural tourism [for example “farmstay” ones that had cross-province reimbursement” (Xu 2014).
programs in which comparatively-wealthy tourists
temporarily reside in rural settings] was a strategic
move to balance urban and rural development and
play multiple roles. “Such tourism promotion,” said

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